The Growth of Joint Ventures in Spain

The Growth of Joint Ventures in Spain

Joint ventures make good business sense and Spanish firms are giving the thumbs up to these kind of strategic alliances both at home and overseas.

Three of Spain’s top companies, Caixabank, Santander and Telefonica, announced in May that they have set up the first joint venture between Spanish banks and telecommunications operators in Europe to develop new digital business.

A joint venture provides companies with increased access to capital to invest in their existing business as well as to expand and take advantage of M&A opportunities. It also offers them an opportunity to pool strategic and marketing ideas, while spreading the risks in any project. In the case of companies with their sights on international expansion, a joint venture with a local partner is often the best way to gain a foothold in a new market.


Last year, Spain’s leading insurance company Mapfre agreed to jointly sell credit insurance with Euler Hermes in Spain, Argentina, Chile, Mexico and Colombia.  Euler Hermes, a subsidiary of German insurer Allianz, operates in 50 countries and is the global leader in credit insurance, while Mapfre operates in 40 countries and is the leader in the non-life insurance business in Latin America.

The joint venture, named Solunion, is 50 percent-owned by each insurer and will cash in on Mapfre’s extensive Latin America distribution network and competitive edge. This new insurance partnership will also be well-placed to consider any M&A deals in South and Latin America fuelled by the region’s strong economic growth.


There are three main types of joint ventures in Spain:

• The first consists in investing as minority shareholders in an existing company or to set up a jointly controlled company, limited or otherwise.

• A second option is to establish a Temporary Business Association to undertake specific projects during a limited time period. This type of association does not have a separate legal profile, so companies maintain their own legal status while allowing joint operations in line with a pre-established set of rules.

Infrastructure companies bidding for contracts for new motorway, rail or other concessions will often set up a Temporary Business Association.

• The third option is an Economic Interest Group, which is similar to a partnership because the participants have joint and separate liability for their debts. The members of the Group must draw up a public deed, incorporate by-laws and register the new entity.

For more information on joint ventures, contact Argali Abogados.

One Comment

  1. Philippe ROBERT says:

    I’m a partner of the french leader of the « Groupe Pierre & Vacances Les Senioriales »
    Website :
    20% of french and european seniors people ( 3 000 000 persons only in France ) hope to spend their retreat in an other country, Portugal, Spain, etc.

    We are ready to begin de first program in Spain and we need a partner to financing the project or a joint venture contract.

    This can interest your investors ?

    Our business plan a disposition.

    Many thanks

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